There's little to report outside the two words in the title. Today truly was an "uneventful session." Bond markets might have been at more risk had it not been for the news out of Spain that Catalonia (or Catalunya for you MotoGP fans) needs help from the Spanish government to make ends meet. Yes, the Spanish banking crisis is old news, but this morning's wire is new news, and THE only major news of the day. With that, Treasuries and MBS were able to hold slight overnight gains, trading uneventfully sideways throughout the session and gladly punching the clock three hours earlier than normal.
PLEASE NOTE: MARKETS AND BANKS WILL BE CLOSED ON MONDAY 5/29/12 IN OBSERVANCE OF MEMORIAL DAY. We do not have any scheduled commentary coming out between now and Tuesday 5/30. MBS Live subscribers will continue to receive any "time of day" notifications or pertinent alerts if European events move overseas markets significantly on Monday. Happy Memorial Day and we will see you back here on Tuesday.
MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing
is available via MBS Live.
Pricing as of 3:21 PM EST
Afternoon Reprice Alerts and Updates
Below is a recap of instant Reprice Alerts
and updates issued via email and text alert to MBS Live subscribers
Mid-Day Commentary and a Chart of the Catalonia Effect
Bond markets made a quick head fake in a weaker direction following the better-than-expected Consumer Sentiment release at 9:55am, but must have quickly remembered that it's Europe, and not the domestic consumer, that's at the heart of the ongoing epic flight-to-safety. Indeed, today is one of those days where bond markets and the European currency are very well linked-up, the latter taking it's first major cue of the morning on news out of Spain that its wealthiest province officially asked for help from the Spanish government to service its debt. Since then, the Euro fell to test a technical boundary at 1.25, which set up the lows that began the ensuing range trade with the highs ostensibly inspired by levels immediately preceding the Spain news. It's all right here in this chart...
Live Chat Featured Comments
Matthew Graham : "of course, it's only ever a "recommendation" but i don't know anyone who isn't taking them up on it."
Matthew Graham : "http://www.sifma.org/news/news.aspx?id=8589938739"
Victor Burek : "are stocks and bond market closing early today?"
Andrew Horowitz : "Oh absolutely the world will be flooded with more drachmas than shares of FB"
Adam Quinones : "Greece will try to inflate out of the hole"
Adam Quinones : "next major support level"
Adam Quinones : "1.22"
Matthew Graham : "I have no idea what it would go to TR, but I'm starting to see some articles mentioning a parity break as one of the uglier possible scenarios."
Andy Pada : "Exit of the Eurozone aka "When PIIGS Fly""
Matthew Graham : "matt damon fights hordes of unemployed drunken spanish 20-somethings?"
Ted Rood : "The "Catalonia Effect" would be a great name for a new Bourne movie"
Ted Rood : "dead cat bounce. What does it go to if, er, I mean, when PIIGS start defaulting left and right on their obligations??"
Dirk Postupack : "Just an FYI and update......Everbank does not take MI transfers from UG or CMG......CMG being the newest......they are however trying to work out the details to work with CMG but it may take some time.......any suggestions on who may take CMG transfers beside plaza?"
Ted Rood : "They intended to put it all on the 6 horse, had a hot tip from Greece he was going to "win for fun" today."
Ted Rood : "Catalonia asked Spain if it coud borrow 24M euro "until Tuesday". Just didn't specify which Tuesday."
Victor Burek : "if lockign today, i would do so early..lenders may reprice worse later ahead of the long weekend"
Chris Kopec : "No, but between now and Friday.....ADP/UE/GFP/NFP all clustered inside 4 days......we usually get the gut punch prior to NFP, and we are losing a day on Monday. Tuesday could get choppy."
Victor Burek : "why lose 4 days locking today"
Victor Burek : "not between now and Tuesday"
Chris Kopec : "Rates could go a little lower, or a lot higher."
Matt Hodges : "consider that fact carefully everyone. CK is locking..nuff said"
Adam Dahill : "nada I'm waiting for greece to go bust"
Chris Kopec : "Me"
Aaron Buyside Meyer : "anyone locking today?"